The Franklin India Feeder – Franklin European Growth Fund is an open ended fund investing in overseas markets in order to provide capital appreciation. It invests primarily in units of Franklin European Growth Fund, which in turn invests in securities of companies which have principal businesses in Europe.
Type or nature of fund
Franklin India Feeder – Franklin European Growth Fund is an open ended fund of funds scheme.
Investment objective
The primary objective of Franklin India Feeder – Franklin European Growth Fund is to invest in overseas markets, specifically in units of Franklin European Growth Fund which in turn invest in securities of companies incorporated in and having their main business in Europe in order to offer capital appreciation.
Fund information
| Inception date | May 19, 2014 |
| CRISIL rank | Not ranked by CRISIL |
| Schemes |
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| Entry load | Nil |
| Exit load | 1% for redemptions within 18 months of allotment |
| Minimum investment | Rs 5,000 |
| Product label – Risk and target investors | High Risk product designed for investors looking for long term capital appreciation by investing in an overseas equity fund which deals primarily with European companies. |
| Benchmark |
MSCI Europe Index
|
| SIP (Systematic Investment Plan) |
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| SWP (Systematic Withdrawal Plan) | Yes. Investors with a minimum account balance of Rs 25,000 can opt for either a Monthly or quarterly option with a choice between fixed and capital appreciation. |
| STP (Systematic Transfer Plan) | Yes. Redeemed units should be reinvested in another scheme. |
| Redemption | Minimum Redemption Amount – Rs 1,000. |
| Taxation (on investment and on redemption) | Investors should consult their tax adviser to get an exact picture of tax implications arising out of their investment in this scheme. |
Fund managers
Franklin India Feeder – Franklin European Growth Fund is managed by Mr. Neeraj Gaurh.
Mr. Neeraj Gaurh
Designation and Work
- Mr. Gaurh is a research analyst at Franklin Templeton India and is in charge of research in retail, logistics and agricultural sectors.
- Mr. Gaurh has been in this industry for four years, having worked with ICICI Bank and Nomura Securities before joining Franklin Templeton.
Education
- Mr. Gaurh holds an MBA from IIM, Kozhikode and a BE from MNIT, Jaipur. He is also a CFA Charterholder.
Investment philosophy or strategy
Franklin India Feeder –Franklin European Growth Fund is a passively handled fund which uses bottom-up research to find securities which match its investment goal. The fund aims to track and identify companies which have performed well in the past and those which hold a competitive edge over competitors, with a primary focus on companies across different sectors. This fund works closely with Franklin European Growth Fund to deliver on its objectives.
Portfolio – Sector / Top 10 holdings
| Company | Industry | Percentage |
| Euler Hermes Group | Insurance | 5.63 |
| Prysmian Spa | Cables | 5.18 |
| International Personal Finance PLC | Finance | 4.69 |
| Banca Generali | Banking | 4.69 |
| Legrand SA | Infrastructure | 4.6 |
| Mediaset Espana Comunicacion SA | Television | 4.51 |
| Sanofi | Healthcare | 4.37 |
| C&C Group PLC | F&B | 4.33 |
| BPOST SA | Postal | 4.12 |
| Ashmore Group PLC | Investment | 4.1 |
Risk measures
Franklin India Feeder – Franklin European Growth Fund is a relatively new fund and there are no risk measures for this fund yet.
| Sharpe ratio (Annualized) | N/A |
| R-squared | N/A |
| Beta | N/A |
| Standard Deviation | N/A |
Performance
| AUM | Rs 50.53 crores (as of May 29, 2015) |
| NAV (as of 04/09/2015) |
Dividend – 8.90 Growth – 8.90 Direct Dividend – 9.05 Direct Growth – 9.05 |
Returns
The compounded annualized returns provided by Franklin India Feeder – Franklin European Growth Fund in comparison to market returns are shown in the table below.
| Period | Scheme returns | MSCI Europe Index |
| 1 year | -11.50% | -3.25% |
| 3 years | 20.19% | 19.43% |
| 5 years | 15.18% | 12.69% |
| Since Inception | 13.62% | 10.26% |
Expense Ratio
The current expense ratio of Franklin India Feeder – Franklin European Growth Fund is 1.83% for regular and 0.61% for direct (As of July 31, 2015).
Expert view of the fund
Franklin India Feeder – Franklin European Growth Fund offers a unique opportunity for Indian investors to be associated with European markets. While the fund in itself is relatively new, it has found quite a few takers in this short period. European markets might not be the strongest ones in the current economic scenario but still provide a decent investment opportunity, provided the investments are smart. The market MIGHT pick up in the near future and could be a bonanza for investors who have put their trust and faith into this fund or it could stay at its current level, which could make the investments a poor choice.
How to apply – online + distributors
Individuals looking to register for Franklin India Feeder – Franklin European Growth Fund can do so in two ways, online and offline. Investors who prefer the online mode need to log onto the official website of Franklin Templeton India and follow a few basic steps listed on the website. They are required to provide a few essential details like their mobile numbers, email id, PAN and bank information in order to successfully register for this plan.
The offline registration process can be done at authorised distributors/banks and one needs to fill up an application form (KYC) providing all relevant information and submitting it to the relevant authority.
